Cryptocurrency trading on central exchanges up 13% in July

Cryptocurrency trading on central exchanges up 13% in July

In July, the price of cryptocurrencies trading on centralised exchanges was up to $3.12 trillion, a 13 per cent increase, according to researcher CryptoCompare, as the price of the digital currency shows signs of recovery from the recent market crash.

The overall volume of cryptocurrencies on exchanges was $4.51 trillion in July, and the derivatives market now makes up 69 per cent of total volume, up from 66 per cent in June.

On July 29, the exchanges traded as much as $245 billion, which is 9.7% more than June's top daily high of $223 billion.

Spot criptocurrency trading fell to $1.39 trillion in July, a 1.3 per cent decline from the lowest since December 2020, according to CryptoCompare.

The market for cryptocurrencies plunged in May and June due to worries about high inflation and Federal Reserve interest rate hikes.

Some cryptocurrencies lenders have froze customer withdrawals after the collapse of a major pair of tokens.

The price of the digital currency gained 17 per cent in July. It is not a new all-time high of $69,000 in November, but it is still a far cry from its all-time high of $24,300.

The increase in derivatives trading volume indicates an increase in speculative activity, as traders believe there is room for more upside in this rally, he said. There is no U.S. Federal Reserve meeting in August.

Traders are speculating about the upcoming Ethereum merge, according to CryptoCompare, which is expected to be completed in September.

Its June low was $880, and the price of ether has gone up to around $1,900.

In July, BinanceUSD - a stable coin issued by Binance, became more prominent, with spot volumes for BinanceUSD trades overtaking the dollar for the first time.

Binance held the top spot among exchanges, with 54 per cent of the market share, while Atom Asset Exchange AAX was the second largest, with volume rising 26.5 per cent in July.

On Tuesday the US exchange Coinbase reported a larger than expected loss, with trading volumes having more than halved in the second quarter of 2022.